Edelman Financial Engines wealth planner Andy Smith joins Jean to explain why speculation can lead to risky investments and if there’s ever a time when speculation can be used in goals-based investing.

Investing strategies, such as asset allocation, diversification or rebalancing, do not ensure or guarantee better performance and cannot eliminate the risk of investment losses. All investments have inherent risks, including loss of principal. There are no guarantees that a portfolio employing these or any other strategy will outperform a portfolio that does not engage in such strategies. Past performance does not guarantee future results.

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What are the differences between investing and speculation?